[For Information Purpose Only]
August 21, 2015
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Akiko Watanabe,Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Debt Financing
Invincible Investment Corporation (INV) decided to obtain new debt financing as shown below.
1. Reason for Obtaining New Debt Financing
INV decided today to obtain new debt financing (hereinafter the “Financing”) in order toprocure funds for the acquisition of three hotel properties (trust beneficiary interests indomestic real estate) (Note), which are to be acquired on August 28, 2015, as well as a
portion of the related expenses.
(Note)For details on the acquisition of the three hotel properties, please refer to the press release dated as oftoday entitled “Notice concerning Acquisition of Assets and Entering into Leasing Contract.”

2. Details of the New Borrowing (anticipated)
Term Loan (A)(1) Lender: Mizuho Bank, Ltd.
(2) Borrowing amount: JPY 3,682 million(3) Interest rate
: One-month JPY TIBOR (Base Rate) + spread (0.5%);
however the first interest calculation period uses
two-month JPY TIBOR + spread (0.5%) (Note)
Variable interest rate(4) Borrowing method: Borrowing based on separate term loan agreement dated
as of August 26, 2015
Unsecured / with no guarantee(5) Agreement date
: August 26, 2015
This English language notice is a translation of the Japanese-language notice released on August 21, 2015 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1(6) Anticipated borrowing date(7) Interest payment date

(8) Principal repayment method(9) Principal maturity date
(Note): August 28, 2015
: On (1) the last Japanese business day of each month
before the principal maturity date, beginning with
September 30, 2015, and (2) the principal maturity date
: Lump-sum repayment on the principal maturity date
: August 28, 2019・Base rate applicable for the interest calculation period for interest to be paid on the relevant interest
payment date shall be one-month JPY TIBOR as announced by Japanese Bankers Association twoJapanese business days prior to the immediately preceding interest payment date.
・ JPY TIBOR as announced by JBA TIBOR Administration is available at its website(http://www.jbatibor.or.jp).
・Details of our debt financing is available at the “Borrowings & Investment Corporation Bonds” page ofINV’s website (http://www.invincible-inv.co.jp/eng/cms/loan.html).

3. Future outlook
The Financing has no effect on the forecasted financial results and distributions for thefiscal period ended June 2015 (January 1, 2015 to June 30, 2015). For the fiscal period
ending December 2015 (July 1, 2015 to December 31, 2015), the fiscal period ending June
2016 (January 1, 2016 to June 30, 2016) and the fiscal period ending December 2016 (July1, 2016 to December 31, 2016), please refer to the press release entitled “Noticeconcerning Revision of Forecast of Financial Results and Distribution for the 24th Fiscal
Period Ended June 2015, the 25th Fiscal Period Ending December 2015, the 26th Fiscal
Period Ending June 2016 and 27th Fiscal Period Ending December 2016” dated as oftoday.
4. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure(1) Amount of funds to be raised
JPY3,682 million(2) Specific use of proceeds and scheduled timing of expenditure
Use of proceeds
A part of funds to acquire specified
assets and the related expenses

Amount (mn JPY)

Scheduled timing of expenditure

3,682

August 28, 2015

5. Other matters necessary for appropriate understanding and decision by investors
The Financing described above will not result in any material change to the “InvestmentRisks” (toshi risuku) in the semi-annual securities report (yuka shoken hokokusho) of INV
for the fiscal period ended December 2014 (July 1, 2014 – December 31, 2014) (availablein Japanese only), filed on March 27, 2015, as well as “Section Two: Reference Information,
Part Two: Complementary Information of Reference Information, 6. Investment Risks” inthe securities registration statement (yuka shoken todokedesho) of INV (available inJapanese only) filed on June 25, 2015.
This English language notice is a translation of the Japanese-language notice released on August 21, 2015 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

2(Appendix)＜Status of Borrowings before and after the Financing＞
The table below provides an overview of the borrowings of INV before the Financing.
Information which will be updated in connection with the Financing are underlined in each of the tables
below.
(Before the Financing: as of August 21, 2015)
LenderBorrowingdate

Borrowingamount(mn JPY)

Interest rate
(per annum)(Note 1)Maturity
date

Security /guarantee

July 16, 2015

28,9790.53%
VariableInterest Rate
(Note 2)

July 16,2018Unsecured /nonguarantee

July 16,2019Unsecured /nonguarantee

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Shinsei Bank, Limited
0.63%

Citibank Japan Ltd.
New
Syndicate
Loan (E)

Sumitomo Mitsui Trust Bank, Limited

July 16, 2015

28,979Resona Bank, Limited
Mitsubishi UFJ Trust and BankingCorporation

July 16, 2015

28,9790.73%
VariableInterest Rate
(Note 4)

July 16,
2020

Unsecured /nonguarantee

1,401

0.33%
VariableInterest Rate
(Note 5)

July 16, 2015

May 16,2016

Unsecured /nonguarantee

88,3380.63%(Note 6)

Mizuho Bank, Ltd.
Total debt
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Interest Rate(Note 3)

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Variable

The interest rates applicable for the period from July 31, 2015 to August 30, 2015.
One-month JPY TIBOR + spread (0.4%)
One-month JPY TIBOR + spread (0.5%)
One-month JPY TIBOR + spread (0.6%)
One-month JPY TIBOR + spread (0.2%)
Interest rate (per annum) provided in Total debt is the weighted average interest rate based on theborrowing amount, excluding borrowings corresponding to the expected consumption tax refund,assuming that the one-month JPY TIBOR as of July 29, 2015, is applied, and rounded to the nearest two
decimal places.
Borrowings corresponding to the expected consumption tax refund mean the borrowings which will beprepaid in the amount equivalent to the refund of consumption tax, which were paid in relation to theacquisition of the trust beneficiary interests acquired by the borrowings executed at the same time, in thecase where the above-mentioned consumption tax refunds are received. The same shall apply
hereinafter.
The borrowing amount is rounded down to the nearest million JPY.

This English language notice is a translation of the Japanese-language notice released on August 21, 2015 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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The table below provides an overview of the borrowings of INV after the Financing.
(After the Financing: as of August 28, 2015 (anticipated))
LenderBorrowingdate

Borrowingamount(mn JPY)

Interest rate
(per annum)

Maturity
date

Security /guarantee

28,9790.53%
VariableInterest Rate
(Note 1)
(Note 2)

July 16,2018

Unsecured /nonguarantee

July 16,2019

Unsecured /nonguarantee

28,9790.73%Variable
Interest Rate
(Note 1)
(Note 4)

July 16,
2020

Unsecured /nonguarantee

1,401

0.33%
VariableInterest Rate
(Note 1)
(Note 5)

May 16,2016

Unsecured /nonguarantee

August 28,
2019

Unsecured /nonguarantee

Sumitomo Mitsui Banking Corporation
July 16, 2015
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.

New
Syndicate
Loan (E)Shinsei Bank, Limited

0.63%

Citibank Japan Ltd.

Variable

Sumitomo Mitsui Trust Bank, Limited

July 16, 2015

28,979Interest Rate
(Note 1)

Resona Bank, Limited
Mitsubishi UFJ Trust and BankingCorporation(Note 3)

July 16, 2015

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

July 16, 2015

Mizuho Bank, Ltd.

Variable
Term Loan(A)Mizuho Bank, Ltd.

August 28, 2015

3,682

Interest Rate
(Note 6)

Total debt

92,0200.63%(Note 7)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)The interest rates applicable for the period from July 31, 2015 to August 30, 2015.
One-month JPY TIBOR + spread (0.4%)
One-month JPY TIBOR + spread (0.5%)
One-month JPY TIBOR + spread (0.6%)
One-month JPY TIBOR + spread (0.2%)
One-month JPY TIBOR + spread (0.5%); however the first interest calculation period uses two-month JPY
TIBOR + spread (0.5%). The interest rates applicable for the first interest calculation period will be
determined as of August 26, 2015.
(Note 7) Interest rate (per annum) provided in Total debt is the weighted average interest rate based on theborrowing amount, excluding borrowings corresponding to the expected consumption tax refund,assuming that the one-month JPY TIBOR as of July 29, 2015, is applied, and rounded to the nearest twodecimal places.
(Note 8) The borrowing amount is rounded down to the nearest million JPY.

This English language notice is a translation of the Japanese-language notice released on August 21, 2015 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

4[For reference only]
Borrowing amount outstanding and Loan to Value Ratio (LTV) before/after the Financing(Units: mn JPY, figures rounded down to the nearest mn JPY)
After the Financing
Before the Financing(As of August 28,Balance(As of August 21,2015)
2015)
Total debt

88,33892,0203,682

Appraisal value (Note 1)

182,488

189,9287,440

47.647.7

0.1

LTV
based on appraisalvalue (%) (Note 2)(Note 1)

(Note 2)

(Note 3)

With regard to appraisal value, the appraisal values of 94 properties held as of the end of June 2015 are
the values as of such date, the appraisal values of 11 hotels and three residential properties acquired on
July 16, 2015 are as of May 1, 2015. Furthermore. “Flexstay Inn Ekoda” in three hotels scheduled to beacquired as of August 28, 2015 is the value as of August 10, 2015, and the other two hotels are as of July31, 2015.
LTV (appraisal value basis) is calculated using the following formula;
LTV based on appraisal value = interest-bearing debt (excluding JPY 1,401 million borrowings
corresponding to the expected consumption tax refund, which is included in New Syndicate Loan (E)) /appraisal value x 100
The amount is rounded down to JPY million, and the percentage is rounded to the nearest first decimal
place.

This English language notice is a translation of the Japanese-language notice released on August 21, 2015 and was prepared solely for the convenience of, andreference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions basedon their own investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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